The Biden administration said it will share more details this week on its plans to allocate $52.7B in subsidies for U.S. semiconductor manufacturing and research.
On Thursday, U.S. Commerce Secretary Gina Raimondo is set to reveal how the administration will award the subsidies granted through the CHIPS and Science Act of 2022.
The bipartisan bill passed both chambers of Congress in July and was signed by President Biden in August.
- The measure approves $39B in incentives for semiconductor companies to invest in chip plants and related factories, as well as $13.2B for workforce training and R&D.
- A separate four-year 25% tax credit, worth around $24B, is designed to encourage manufacturers to build plants in the U.S.
- The Chips Act has spurred more than 40 new semiconductor projects in the U.S., including plans for new fabs and expansions of existing ones, according to the Semiconductor Industry Association.
- With the projects comes nearly $200B in promised investments to boost U.S. manufacturing capacity, according to the trade group.
